National newspaper reports about Sports Direct’s Mike Ashley seeking to join the board of Findel as its chairman to replace David Sugden who is retiring have caused intense speculation in the sector. In response to this, Findel’s Board has issued an announcement in which it confirms that it is in the early stages of discussion with Sports Direct International plc regarding a possible commercial arrangement between Express Gifts and Sports Direct International, and the possible appointment of Mike Ashley to the Board of Findel plc.
The proposal had been made by Schroders on behalf of Sports Direct International and included a requirement that Mike Ashley be made chairman of Findel, replacing outgoing chairman David Sugden, who had previously announced his intention to stand down at the forthcoming AGM. Toscafund, a major investor in Findel plc, has indicated its support for Mike Ashley’s appointment as chairman.
The Findel Board stated that it considered there to be great merit in exploring a commercial supply arrangement with Sports Direct International and that Mike Ashley could make a valuable contribution to the board of Findel but that it had not concluded whether Mr Ashley should be chairman. It added that there would need to be a means through which minority shareholders could be protected and that Mr Ashley would need first to be approved by the Financial Conduct Authority which regulates Express Gifts Ltd.
Sports Direct International has a stake approaching 30 per cent in Findel and in 2015 had tried to secure a position on the Findel board for Ben Gardener but this has been rejected by 81 per cent of Findel’s shareholders. Findel’s annual sales for the year to 31st March 2016 stood at £410.6 million. It had sold its Kitbag business during the year to Fanatics, a US business.
Share